ReportersNotebook — Beauty Care, 12/10/12

SUPPLIER NEWS — Not Your Mother’s hair care is further expanding its distribution by adding Ricky’s NYC to its retail mix.

As of mid-November, Ricky’s NYC had brought in Not Your Mother’s full line of hair care in all its retail stores, as well as its online store. There are more than 11,500 retail locations in the United States currently selling Not Your Mother’s.

Panasonic has introduced a toothbrush to its line of compact personal care products for women. The new EW-DS90 series of battery-operated compact toothbrushes joins its existing lineup of compact body shavers, facial hair trimmers and heated eyelash curlers. The toothbrush — designed to fit in a purse, makeup bag or pocket — offers three types of bristles, including triple-edged, flat and extra-fine.

Prestige Cosmetics has introduced a new line, Total Intensity, which features high-intensity pigments, extended wear and color technology. According to Gisele Candito, SVP Prestige Cosmetics, the Total Intensity’s “fierce colors and uniqueness” add a new element to the Prestige brand. The new collection includes eight long-wearing eye shadows, six liquid liners, 10 smudge-proof pencil eye liners and mascara.

EOS (Evolution of Smooth) is expanding its product portfolio with the launch of its new 24-hour moisturizing shaving cream. Packed with natural conditioning oils, shea butter and antioxidants vitamins C and E, the new EOS moisturizing shave cream promises to provide a closer shave, help prevent razor bumps and nourish skin for 24 hours. The shaving cream is available in several fragrances, as well as fragrance-free for sensitive skin. The price is about $3.49.

Spectrum Brands Holdings has acquired a 56% interest in Shaser Bioscience, a privately held developer of energy-based, aesthetic dermatological technology for home use devices, for $50 million in cash. Spectrum Brands is creating a new consumables business within Remington to focus on developing a full line of energy-based, companion aesthetic dermatology devices and companion products using Shaser Bioscience technology to address the demand for skin care solutions for conditions, including unwanted signs of aging, acne and blemishes, spider veins and other retail aesthetic applications to be announced in the future.

Procter & Gamble’s Head & Shoulders has announced that Argentinean soccer player Lionel (Leo) Messi is appearing in a series of ads designed specifically to reach U.S. Hispanic males. Throughout the campaign in the United States, Messi will be promoting the line Refresh for Men through TV and online ads. Head & Shoulders Refresh for Men is infused with natural mint extract to provide a cool refreshing clean and up to 100% flake-free hair, the company stated.

Kimberly-Clark has appointed former Kraft Foods executive Michael Hsu as president of North America consumer products, succeeding Robert Abernathy, who announced his intent to retire after more than 30 years with the company. Hsu joins K-C from Kraft Foods, where he most recently served as EVP and chief commercial officer.

RETAILER NEWS — Ulta Beauty has announced that Michael MacDonald, president and CEO of DSW, a branded footwear and accessories retailer, has been appointed to its board. MacDonald joins the board with more than 30 years of experience in the retail industry, with expertise in merchandising, marketing, store operations and finance. Prior to joining DSW in 2009, MacDonald served for three years as chairman and CEO of ShopKo Stores.

Unique skin, hair care needs drive shelf expansion

When it comes to beauty — especially skin care and hair care — there’s no denying that African-Americans represent a tremendous opportunity for manufacturers and retailers.

According to Nielsen’s recently released report, “African-American Consumers: Still Vital, Still Growing,” the number of African-Americans in the United States reached nearly 43 million in 2012, representing roughly 13.7% of the U.S. population. Since 2000, the total U.S. population only increased by 11.3%, while the African-American population rose by 17.9%. Furthermore, African-Americans continue to be important consumers with a collective buying power estimated to reach a hefty $1.1 trillion by 2015.

The reality is that retailers and manufacturers of skin care and hair care products have a unique opportunity to connect with African-American shoppers and snap up a slice of the projected $1.1 trillion pie.

In fact, according to Nielsen’s research, African-Americans tend to buy more hand and body lotions, and all-purpose skin creams at a rate of 54% and 40% higher than the general population, respectively. And people with darker skin colors are more likely to use products that focus on discoloration or dark spots compared with lighter skinned people.

Meanwhile, hair care is especially important to African-American shoppers, due in large part to the dryness of their hair. This is evidenced by the fact that they spend more than nine times more on ethnic hair and beauty products than any other group, according to Nielsen research.

Echoing this sentiment, Mintel’s “Black Haircare – U.S. – August 2012” report states that, “In spite of the recession-driven slowdown of the economy, sales of black hair care have held up well, as consumers have shifted their purchases from expensive salons to drug stores and beauty supply shops.”

Noting the growing natural hair trend that has seen a shift from relaxed to natural hair, giving rise to products that help hair transition, Mintel projects that when adjusted for inflation, the African-American hair care market will increase 2% from 2012 to 2017.

Retailers such as Target have been offering a greater selection of hair care products. Target has recently doubled or tripled its multi-ethnic beauty merchandising in select stores, with some sets reaching up to 36 feet. Today, Target has more than 1,000 unique multi-ethnic merchandise SKUs in beauty.

The article above is part of the DSN Category Review Series. For the complete Ethnic Beauty Buy-In Report, including extensive charts, data and more analysis, click here.

Merger of WAG, Alliance Boots creates global Rx, HBA giant

It’s a marriage of industry icons. In June, Walgreens finally made a long-awaited leap across the Atlantic to acquire British-based Alliance Boots, one of the world’s premier retailers of pharmaceuticals, health and beauty aids, and beauty care products.

The merger creates a global giant in drug store retailing, pharmacy services and wholesaling. Launched with a single store selling herbal remedies in Nottingham, England, in 1849, Alliance Boots operates more than 3,200 units with pharmacies, and services more than 170,000 pharmacies, physicians, health centers and hospitals throughout the world through its wholesale businesses and allied ventures.

Combined, the two companies are the global leader in pharmacy-led health-and-wellness retailing, with more than 11,000 stores in 12 countries. Walgreens/Alliance Boots also comprises the world’s largest purchaser of prescription drugs.

Walgreens president and CEO Greg Wasson said the deal created unmatched economies of scale as “the first global pharmacy-led healthcare platform.”

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